Wednesday, 04 November 2015 01:02

Quick Loans to bring back Self Cert in January 2016

We are pleased to announce that as of January 2016 we will be at the forefront of bringing back Self Cert mortgages to the UK through our new sister site.

Self Cert mortgages are important vehicles for those who are Self Employed and want to get on the property ladder. Without them, those who went in to self employment have often found themselves unable to get a mortgage – we want to reverse that.

We believe that the products were unfairly blamed for the banking crisis, in reality they actually had little or nothing to do with the crash, on this side of the Atlantic anyway. Blatant fraud (often by brokers) and mortgage backed security swaps in which banks lost their common sense were the real reason that the banks crashed. We intend to avoid both of those major factors.

The majority of people on Self Cert mortgages did not default and are up to date on their repayments. We are confident that our own assessment process will reduce fraud as much as humanly possible and well within manageable levels.

Quick Loans Ltd has recently purchased the domain name SelfCert.co.uk – it is from this site we and our partners will slowly look towards proving the concept and viability of bringing back these products to the market on a larger scale. We expect interest to be high from day one, so much so that we don’t expect to meet demand on our own.

We will be in a position to release more details on this in the coming weeks with a launch date of mid January 2016.

54 comments

  • Comment Link Wednesday, 11 November 2015 05:50 posted by Anon

    I was under the impression that the FCA banned these types of mortgages? How do you plan on getting round the ban if they did actually ban them?

  • Comment Link Saturday, 14 November 2015 16:43 posted by Anonymous

    You are exactly right, self cert did not cause the problem. I was a mortgage adviser for 7 years involved in many self cert and I can only think of three who did not manage to keep their mortgages up to date. The real problem if any of self cert was when the mainstream lenders decided they wanted to enter this market instead of leaving it to specialist lenders.

  • Comment Link Sunday, 15 November 2015 13:54 posted by QuickLoans

    That is so true, unfortunately the business model of repackaging loans and things was totally forgotten, the buy to let side was totally forgotten and some rogue brokers falsifying documents has been forgotten. What's remembered is that someone exaggerated their income and that must be blamed.

    We run a totally different model from the banks, we don't raise money on the markets, we don't need to refinance these products. if we run out of cash we stop lending to new applicants until more capital flows back - not rocket science but alas competition scares people these days.

  • Comment Link Monday, 16 November 2015 10:13 posted by Anonymous

    This is really good news. Mainstream banks do not understand entrepreneurship. The daft rules were a knee jerk reaction and entirely inappropriate. I have been self employed since the age of 19, and have always struggled with mortgages despite never missing a payment nor having any bad debts whether personal or business. There is no understanding of the fact that you can be running a successful business, which makes good profit, while living on a modest personal income and managing cashflow in a predictive and sensible way. Paying yourself a large PAYE income (which banks love to see) is completely bonkers for small businesspeople and in fact would deprive the business of important growth capital. Speaking purely personally, personal wealth does not mean you need to be extravagant or burn through loads of money. I live very well on a comparatively small income while having high net worth. The less I spend now, the more I can put into investments and property (pension) which can generate passive income sooner, and the quicker my business can use spare capital to grow and potentially be sold for a larger sum. Likewise there is no acknowledgement of serial entrepreneurs whose goal is to build businesses every 3-5 years and then sell them (proceeds being capital gains for purposes of entrepreneurs relief - so can not count as income!). Currently a lot of us are unfairly being punished with high mortgage rates and the "liar" tag as coined by mainstream media is really unfair and inappropriate. Most of us are consciencious and diligent hard-working people who know the importance of managing their cashflow and know how to make money work for them rather than being drones in a system. It is a good thing that you are swimming against the tide on this because I am sure you will very quickly build a very strong and supportive customer base.

  • Comment Link Tuesday, 17 November 2015 19:13 posted by Anonymous

    A good idea using the EU Directive to avoid giving advice, but most importantly, what will the interest rate be ??!

  • Comment Link Wednesday, 18 November 2015 10:16 posted by Anonymous

    What will your rates be?

  • Comment Link Wednesday, 18 November 2015 11:31 posted by Anonymous

    Seems like a step in right direction. This whole MMR is exaggerated. I have known many instances where High Street Branch based Mortgage Consultants have advised clients on BTL scheme abuse, advised the clients on applying further advance on Residential Mortgage and fix the rate then applying for consent to let and moving on to new residential property and have both the mortgages on 85% LTV, which is impossible if client applies a Let to Buy through a Broker. Anything broker does is just looked at as a fraud to the lenders while Branch Advisors are getting away with heinous financial crimes!!

  • Comment Link Wednesday, 18 November 2015 12:01 posted by Anonymous

    Very interested in this, are you able to work with someone who is recently discharged as bankrupt, but as a couple has a 10% deposit and proven income of £6,000 per month jointly?

  • Comment Link Wednesday, 18 November 2015 12:18 posted by Anonymous

    A self-cert mortgage is aimed at those who earn one figure and declare another. As you will still need legal work to purchase/remortgage, your details will be with HMRC, who will record the lender details. Borrowers - best of luck when it comes to tax investigation

  • Comment Link Wednesday, 18 November 2015 12:26 posted by Anonymous

    What a breath of fresh air, Buyer beware!
    The primary reason for the crash was NOT self cert mortgages in the UK. It was the greedy securitisation of mortgages in the US by greedy finance corporations that were then sold on to the greedy investment markets. When the penny dropped that these securitisations were not potentially as good an investment as initially thought. The reality then impacted on the rest of the world.
    Self cert mortgages in the UK were priced according to risk and were suitable for some clients and banks alike, it now appears that Quick Loans is now filling the void that banks left.

  • Comment Link Wednesday, 18 November 2015 14:40 posted by Anonymous

    Interesting. Hope you will consider retirees with decent income and large equity in their properties to buy or 're-mortgage.

  • Comment Link Wednesday, 18 November 2015 15:23 posted by Anonymous

    Completely different question/scenario idiot!

  • Comment Link Wednesday, 18 November 2015 16:44 posted by Peter Hirst

    Self Cert will keep the UK housing market going - as most self employed make more money than anyone on PAYE the loans can be easily affordable to pay back - in Spain 125% mortgages are back! To help there housing market - it's a great idea and the company will be very successful

  • Comment Link Wednesday, 18 November 2015 17:04 posted by Anonymous

    Will you be willing to lend to older 70+ borrowers under right to buy and/or buy to let?

  • Comment Link Thursday, 19 November 2015 05:13 posted by Anonymous

    I just read this article.... http://www.thisismoney.co.uk/money/mortgageshome/article-3322836/Return-liar-loans-UK-firms-setting-Eastern-Europe-offer-high-risk-mortgages-not-require-borrowers-prove-earn.html

    A message to Graeme, if this article is complete in it's review of your plan, you may come unstuck of a few main points. Namely, you are not permitted to operate your business, even within the EU, from an establishment within the UK. See PERG 2.9. So you got to be out the UK to run your business.

    Also, the FCA, whilst a thorn in any visionaries backside, they are not stupid. They put an addendum in place to combat abuse of the E-Comm directive in March I believe. Basically, if you market is primarily within the UK, they can impose the same requirements on you, that as if you were in the UK, forcing you to step through the authorisation process or place heavy restrictions on your business until you comply.

    I have also set myself up in Europe, in Feb so I have a bit of a headstart, but I live in a third country, so I was covered, per PERG 2.9.16. But if your in the UK, the rules get a bit more strict.

    Good Luck!

  • Comment Link Thursday, 19 November 2015 05:20 posted by Anonymous

    Scroll about 1/3 down this page

    http://www.publications.parliament.uk/pa/ld201415/ldhansrd/text/150302-gc0001.htm

  • Comment Link Thursday, 19 November 2015 12:42 posted by QuickLoans

    Hi,

    Thanks for taking the time to contact us, and the same to others. We have been snowed under with requests or information but will try to reply the other comments on this page shortly.

    Regarding this message, it really is appreciated. There are some technical details that aren't in the article which are important, but technical factors we didn't go into massive detail when talking to them as they would bore the readers. The main points of the articles are true.

    We aren't technically moving, there will be a brand new company formed offshore not linked to any UK company. The UK company will cease to operate and hand back its license / permission to the FCA. The new entity won't have a UK location, so will be 100% located in that Country. We intend to offer mortgages to other EU countries, so it won't just be the UK.

    We were aware of the addendum (I think you were right, it as around March) They basically tried to infer that if they found that we / anyone else was moving offshore to avoid regulation. They would then make a ruling that would prevent UK Based debt collectors from collecting on the debt.

    We have had advice that it is illegal under EU law, but there are ways round that without taking the FCA or UK Government to court to require them to change this view. One off the ways would be for foreign debt collectors enforcing this debt, but realistically that would be a long way off.

    Many Thanks
    Graeme

  • Comment Link Monday, 23 November 2015 10:22 posted by Anonymous

    In case you haven't had enough people congratulating you on this Graeme, please add me to the list. This is fantastic news.

    I have been with my current mortgage provider for over ten years, no bad credit, never missed a payment and have an LTV of just under 40%. But if I were to apply get the same facility today I wouldn't be accepted. How can this make sense?

    Please ensure your website has plenty of capacity to scale on launch day. You will be popular.

  • Comment Link Tuesday, 24 November 2015 19:35 posted by Anonymous

    Hi Graeme,

    This is fantastic news. I have been shocked that no lender would accept someone with 50% LTV just because the income multiplied by 4.5 doesn't cover the remaining 50%. Surely lending to someone with 50% LTV can't be considered taking a big risk. Is there anywhere I can find more about how the self cert process will work?

    Many thanks.

  • Comment Link Tuesday, 08 December 2015 18:36 posted by Anonymous

    As a mortgage advisor currently, I feel the MMR rules have gone too far and common sense is out the window.

  • Comment Link Wednesday, 23 December 2015 20:20 posted by Anonymous

    Hello, Do you have a launch date confirmed yet? Best of luck with your new venture!

  • Comment Link Thursday, 24 December 2015 02:35 posted by Anonymous

    Any specific date in January 2016? I was just declined by my bank just because they want 3 years of accounts for my business. My business is earning more than £750 a day which means I can pay off my mortgage with one day of income. I m just disparetely waiting for Quick Loans to start the self certification mortgages.

  • Comment Link Sunday, 03 January 2016 21:38 posted by Anonymous

    Best news I have heard for a very long time!! At last fair play and common sense is returning to the marketplace, well done self Cert!!

  • Comment Link Monday, 04 January 2016 11:03 posted by Anonymous

    Hi there, are you still on track to launch mid-Jan?

  • Comment Link Monday, 04 January 2016 21:53 posted by Anonymous

    I'm self emloyed, & for the last 18 years held a self cert mortgage with the halifax. Indeed, during this time, I have made many one off payments to lower my mortgage by thousands. Yet halifax won't look at me for a new mortgage when I have wanted to move home. This could be the get out from my mortage\home prison?

  • Comment Link Thursday, 07 January 2016 14:09 posted by Anonymous

    My current personal mortgage cost me £13,729 per month when I got it in 2008 for a £2m self cert loan. In December 2014 it was £8225 pcm and over the last year I paid off over £1m of it. I now pay £4000 pcm. The Bank of Scotland tell me that I am not eligible for a lower rate (than SVR) because I cannot prove my income! I have never defaulted on any of my numerous loans or mortgages since I bought my first house in 1981 with a self-cert loan. I have always had self cert and never had a problem. For over 30 years I have made a good living buying and selling uk property. The new UK rules are idiotic and victimise innocent, hardworking businessmen and their families. The UK government obviously have no idea about reality and survival in business for good honest people like me. I built my empire from nothing. I did not have an Eton education like our Prime Minister. I left school with 3 o'levels and no prospects and then went out to work as a manual labourer. I saved every penny for a deposit on a house and built up from there. I relied on self cert loans for the survival of my business. I still can't prove my income as it varies dramatically from year to year but if I can afford to pay £13,729 a month for my mortgage I can obviously afford to pay less on a lower rate. How stupid are UK banks and the UK government? I used to give 10 months of work to 6 self-employed tradesmen every year for property renovations and spend over £250,000 a year in my local area. Since 2008 I spend about 5% of the former figure on tradesmen and a couple of thousand a year locally - all because self-certs have stopped! Obviously our government do not want the economy to recover and their knee-jerk reactions have bankrupted numerous small businesses and left honest people homeless. They are a disgrace to the country and should be jailed for their incompetence. I calculate that I have lost about £10m in income because of self-certs being banned. I look forward to starting again with self-cert.co.uk and getting my former income back on track with multiple property deals and providing employment for decent people in my community!

  • Comment Link Tuesday, 12 January 2016 17:35 posted by Anonymous

    Will you b lending money to people with previous credit problems?

  • Comment Link Wednesday, 13 January 2016 07:50 posted by Anonymous

    Hi

    Looking forward to the launch of self cert mortgages. The guy with a monthly mortgage of £13729 - ouch!! mirrors my situation, albeit to a 'lesser degree' shall we say.

    In my opinion the only way that self employed people can access mortgage finance is via the self cert route. It seems to make no difference if you can prove your income or not, or provide all the necessary proof that you are credit worthy, UK banks are not interested in the likes of me.

    Anyway, here's to the opening of the promised land.

  • Comment Link Wednesday, 13 January 2016 18:04 posted by Anonymous

    Thank the Lord for innovative businessmen!
    Bring back self cert. It has excluded many people from getting their foot on the ladder. Can't wait.

  • Comment Link Saturday, 16 January 2016 20:13 posted by Anonymous

    Considering you say you have worked for the last 30 years you will have paid tax therefore you can prove your income. Any number of lenders will go on the last years figures so there is no reason you cannot get a mortgage. Self cert mortgages where never designed for property renovations.

  • Comment Link Monday, 18 January 2016 20:08 posted by Anonymous

    A friend of mine has a rental income of £850,000 and has had this level of income from a reliable source for 10 years. He recently went to his bank to ask for a loan of £425,000 to upgrade his property. His accountant went with him as "back-up" with the relevant paperwork. The bank refused the loan unless my friend was willing to provide security worth £850k! That is how keen British banks are to lend to property owners! This is even with a proven income source, so what hope do I and others like me have, who cannot prove their income regardless of being able to prove the fact that they can and have been paying the interest on large loans for many years?

  • Comment Link Tuesday, 19 January 2016 01:56 posted by Anonymous

    Please can you confirm when the site will be up and running. Can you provide an email so possible customers like myself can lodge their enquiry. Thank you.

  • Comment Link Tuesday, 19 January 2016 07:04 posted by Anonymous

    So how does one contact you?

    Nothing on that web address.

  • Comment Link Thursday, 21 January 2016 09:23 posted by Enter Your Name

    Having been a financial services compliance officer for more than 25 years, I would like to offer an alternative and slightly less rosy picture of the self-cert market.

    During the days of self-cert, I conducted many investigations into brokers who arranged these loans for people despite knowing that the clients had mis-represented their incomes. In one instance, the broker had a script that led clients down a route that inevitably led to poor outcomes.

    In that case, 27 clients lost their properties as a direct result of such loans. In many of these cases, the clients were pushed or guided through a process by the broker and are now loving with the consequences.

    As the investigator, I was left having to arrange for the boker to be arrested by the local Police. My employer and our PI insurer had to cover the losses for the clients, which leads to more expensive PI cover for legitimate advisers.

    I am appalled that Quick Loans / SelfCert.co.uk are seeking to circumvent well-thought out (for a change) regulations in the UK and I fervently hope that this ill-begotten venture fails in order that we do not see a rise in similar offerings with the concomitant misery that will, inevitably, be created for unsuspecting members of the UK public.

  • Comment Link Thursday, 21 January 2016 09:34 posted by Anonymous

    Given the number of positive comments here about self-cert mortgages and how fabulous Quick Loans / SelfCert.co.uk are, what's the betting that my recent comment - giving a somewhat different perspective - doesn't make it past the moderator?

  • Comment Link Thursday, 21 January 2016 10:11 posted by QuickLoans

    Hello

    You won't find us disagreeing with much of what you said, in fact we've said very similar things in the past. Broker fraud was huge, over valuation of properties was huge. People that could only afford their mortgage repayments if the values went up - allowing them to continuously remortgage.

    However there is one big difference between your experiences in the past and what we are offering - we don't use brokers to sell our products.

    We only make money if the mortgages are repaid, that's different from the past where people were making money regardless of whether the mortgage was repaid or not. We've spent 10 years in the business managing risk. For us the biggest risk is putting our money in a bank, risking the bank going under and taking our cash with it.

    The other point is that eventually people have to be treated as adults. Do you ban alcohol to everyone because a few people abuse it?

    We do respect other people's view and will always publish them but this isn't the same as what went on previously.

    All the best
    Martin
    QuickLoans.co.uk

  • Comment Link Thursday, 21 January 2016 11:42 posted by Anonymous

    Whilst it is fair to say that broker fraud was rife, the lenders also had a great role to play. I have seen evidence of lenders - some of them high street, some specialist - coaching advisers on how to package self-cert cases so that they made it through their gating processes.

    I note from the Money Marketing article that "The firm will check affordability using social media accounts to analyse lifestyle habits while customer invoices will be accepted as proof of income."

    Call me a cynic if you will but analysing social media activity as a means of establishing affordability is, at best, wide open to abuse by whoever is arranging / facilitating these loans. At worst it is simply paying lip-service to the concept of establishing affordability.

    You won't be using brokers so how will customers access these loans? If you have internal advisers / arrangers / facilitators, how will you remunerate them? As soon as you give such a person a target or salary validation point, you immediately risk exactly the same situation as occurred previously.

    You say that you only make money if the mortgages are repaid. Are you not making a profit from interest rates then? If not, why are your rates being trailed as being 2% over base?

    I note you seek to challenge my comments about the ban by using an irrelevant comparison to alcohol use. In the same vein, cannabis causes far fewer deaths per user than alcohol but it is banned. As I say, it's an irrelevant argument.

    A more relevant comparison is to the severe restrictions placed on the promotion of non-mainstream pooled investments. These high-risk investments can only be promoted to certain classes of customers. Will you have similar restrictions? Again, call me cynical but I doubt this very much. I feel fairly confident that you will make your self-cert product available to anyone who wants it. Your frankly farcical affordability control tends to suggest I am close to the right track.

  • Comment Link Thursday, 21 January 2016 19:42 posted by Mynameistam

    Well, it appears they are democratic, of nothing else !

    I had a self-cert morgage about 20 years ago, but I owned the property and was only raising about 50% of its value to fund another property purchase . .Whether that made any difference to how easy it was getting arranged, I do not know . . After paying the morgage for a couple of years, the property was sold, and both loans were paid off in full,

    So it worked out well for me, and now I'm again looking into getting another of the same for my current residence.

  • Comment Link Sunday, 24 January 2016 12:39 posted by Anonymous

    Seeing as it's proven impossible to contact them, your negative comments might not have any impact anyway.

  • Comment Link Monday, 25 January 2016 06:00 posted by QuickLoans

    You are totally right, some lenders - if not all were in on it, and it was fraud and people should have gone to jail for it. Trouble is that there was a difference between staff who worked there on huge bonuses for completing deals at any costs, and the shareholders in those lenders.

    We are shareholders, and decision makers in this. It makes no sense for us to sign off mortgages that we don't think would end up in us getting the money back. There is no bonus culture here.

    We are sorry you feel that way about checking affordability via someone's social media details but it has been very common for about 3-4 years in UK lending. Credit Card companies and unsecured lenders do it all the time.

    Regarding brokers, we have over 5000 applications or registrations of interest that we can't ever hope to satisfy, the last thing we need is any more applicants via brokers.

    The profit on 2% above base rate isn't really as clean cut or as simple as it seems. On the face of it, it looks like profit but it's more complicated than that. It depends on a lot of factors such as the Bank of England keeping up with inflation. The true cost of inflation being represented correctly. You've also got to take into account staff costs, default costs, property costs, money transfer costs.

    You mention that these are high risk products. This is complete and utterly wrong. People coming to us with 50% equity in their houses, or 50% deposits is high risk? If you want to see high risk, go to the main high street lenders who are giving out 95% LTV mortgages. Just because they have wage slips doesn't make them safe. Everyone with a wage slip is one day away from being fired. That's risk!


    All the best
    Martin
    Quick Loans

  • Comment Link Monday, 25 January 2016 06:05 posted by QuickLoans

    We only have 4-5 staff members trying to deal with over 5500 enquiries. We've explained to people that we do not have an application process open to new enquiries. We are going through all the previous people that have contacted us and letting them know one by one - in order that we received their contact - about their position.

    We do apologise but we haven't advertised this product at all. We were hoping for a very slow start to this, we are as shocked as anyone that we've received this level of response.

    We are going through everyone though and responding to them individually.

    All the best
    Martin
    Quick Loans

  • Comment Link Thursday, 28 January 2016 08:35 posted by Enter your name

    From: A concerned Compliance Manager
    To: All those interested in this lender

    I strongly recommend that you read and digest the warning issued recently by the Financial Conduct Authority:

    The headline reads:
    Self-certified mortgages from firms not based in the UK – warning to consumers
    http://www.fca.org.uk/news/consumers/self-certified-mortgages-from-firms-not-based-in-the-uk-warning-to-consumers

    Please read this before engaging with this firm.

  • Comment Link Saturday, 13 February 2016 01:06 posted by Anonymous

    No doubt you have a provable income. For people like me who cannot prove income, the government is killing us by not allowing us to remortgage. I'm stuck on 4.95%, so don't insult me like my bank who have informed me that I don't qualify to pay half that! I was paying four times the amount last year. The banks don't care how much they persecute us. Don't insult people like me who have paid massive mortgages in the past and have NEVER defaulted on any loan.

  • Comment Link Monday, 14 March 2016 17:17 posted by Anonymous

    he FCA and you can go play with themselves. No one is going to buy property with the current criteria. SC all the way. Thank God they've turned up.

  • Comment Link Thursday, 24 March 2016 08:55 posted by Enter Your Name

    Zali2001,

    I've set out above a number of direct experiences that I have personally been involved in and I've highlighted the warnings from the UK regulator.

    If you choose to engage with this lender - or any other, similar offering that might crop up in the future - on your own head be it.

    I'm off to "play with myself" now - mainly by continuing to ensure that the advisers for whom I am responsible protect their clients by providing high quality advice on investments and mortgages that won't leave people at risk of losing their homes.

    Good luck - you'll need it.

  • Comment Link Thursday, 24 March 2016 09:11 posted by QuickLoans

    There is one thing you are missing though. All loans and mortgages are subject to UK laws. You can't lose your home without a UK judge authorising it in accordance with UK laws.

    UK laws and UK regulations are completely different things.

    Martin
    QuickLoans.co.uk

  • Comment Link Thursday, 24 March 2016 13:13 posted by Anonymous

    Martin,

    I'm presuming, therefore, that you won't be seeking to repossess the properties of anyone who defaults on your loans.

  • Comment Link Thursday, 24 March 2016 17:01 posted by QuickLoans

    Why would you presume that?

    Martin
    QuickLoans.co.uk

  • Comment Link Wednesday, 30 March 2016 16:12 posted by GaryE

    Totally agree, people in the 70's had to learn the hard way. If they don't have enough money to run it themselves then it should be closed.

  • Comment Link Wednesday, 08 June 2016 13:38 posted by Anonymous

    So refreshing to read this post! If only more people saw things this clearly and possessed as much intelligence and sensibility as the writer, this country could be in much better shape. I empathise on the mortgage front; like you I have struggled with mortgages over the years and for no valid reason. Best of luck to you for the future!

  • Comment Link Sunday, 29 April 2018 12:56 posted by Anonymous

    Can I ask how this went? Any update?

    I need for these products to come back, so if you are back or know of anyone else who is providing them I'd like to know.

    Thanks

  • Comment Link Wednesday, 02 May 2018 16:12 posted by Anonymous

    They didn't come back to the market. Even the Czechs tightened the rules on non bank lending. Basically the main banks don't like competition.

  • Comment Link Sunday, 16 September 2018 10:44 posted by PragueHarry

    You now need over £550,000 euro deposit now to lend in the Cheque Republic. The banks have forced the central bank to kick out all the smaller players. It's actually really anti business, much like the FCA here in the UK.

  • Comment Link Wednesday, 03 October 2018 13:02 posted by Anon

    I wonder if when Brexit ios sorted, trhere will be other lenders who do the same thing. I hope so, I've just been declined.

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